Argentina’s majority state-owned energy company YPF announced on Thursday that it will file to bring its Argentina LNG project under the country’s Large Investment Incentive Regime (RIGI, by its Spanish initials). The special tax, customs, and foreign exchange regime offers investors several fiscal and currency exchange benefits.
Argentina LNG is a large-scale natural gas liquefaction (LNG) project aimed at developing resources in unconventional oil field Vaca Muerta, with an investment of US$51 billion, the largest in the country’s history. It was signed as a joint development agreement between YPF, Italian oil and gas corporation Eni, and Abu Dhabi-based investment company XRG.
YPF president and CEO Horacio Marín said that joining the RIGI is “a crucial step” toward moving forward with a project that will usher in “a new era for Argentina as a global energy exporter.”
“We’re talking about a platform for growth that will generate jobs, technological development, local suppliers, and an unprecedented level of international integration for our country,” he said.
In a statement released by the company, YPF described its adhesion to RIGI as “a key milestone” for the development of Argentina LNG, as it will provide it with “long-term legal, tax, customs, and foreign exchange stability.”
